• The dollar fell against a basket of major currencies on Monday, as concerns grew over whether a proposed U.S. tax overhaul program would have a major impact on economic growth, after the bill moved another step closer to passage over the weekend.
The U.S. currency had edged higher after Republicans on the House-Senate negotiating committee on Friday put the finishing touches on a sweeping tax overhaul that involves large cuts in levies on corporations.
But it slid on Monday on uncertainty that the bill would indeed be pushed through, and with some doubts also creeping in over the pro-growth effect the tax reforms would have.
• “Even a passage of the bill by the year’s end could have a limited impact on the dollar as investors are increasingly skeptical of the sustained positive impact the rushed bill will have on the economy,” said Omer Esiner, chief market analyst at Commonwealth FX in Washington.
• Top Republicans are confident the U.S. Congress will pass the tax bill this week, with a Senate vote as early as Tuesday and President Donald Trump aiming to sign the bill by week’s end.
• Against a basket of major currencies, the dollar fell 0.2 percent to 93.702. The euro benefited from the dollar’s weakness, gaining 0.3 percent to$1.1781.
The dollar was 0.1 percent lower against the yen at 112.54 yen following Friday’s rise of 0.2 percent.
• Bitcoin was down 1.1 percent at $18,755 on the Bitstamp exchange. It hit a record high of $19,666 on Sunday, ahead of the launch of bitcoin futures from CME Group Inc.
• The United States was further isolated on Monday over President Donald Trump’s decision to recognize Jerusalem as Israel’s capital when it blocked a United Nations Security Council call for the declaration to be withdrawn.
The remaining 14 council members voted in favor of the Egyptian-drafted resolution, which did not specifically mention the United States or Trump but which expressed “deep regret at recent decisions concerning the status of Jerusalem.”
• President Donald Trump unveiled a new national security strategy on Monday, calling for Pakistan to take decisive action against terrorism and saying Washington had to deal with the challenge posed by North Korea’s weapons programs.
• Minneapolis Federal Reserve Bank President Neel Kashkari said on Monday he voted against the Fed’s decision to raise interest rates last week over worries on weak inflation and a flattening of the yield curve.
• Benchmark Brent crude prices edged higher on Monday, supported by a North Sea pipeline outage and a workers’ strike in the Nigerian energy industry, but U.S. prices slid slightly, highlighting concerns about growing U.S. output.
Brent crude futures LCOc1, the international benchmark, settled up 18 cents at $63.41.
U.S. crude futures CLc1 fell 14 cents to $57.16.
Reference: Reuters
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